Member Info for licker

With Iran deal going nowhere middkeveastnin turmoil again and demand will increase in near term as we comenoutbof covid oil will go one way

Yup agreed. Jamtart1 behalf don't bring it up

I know faslane very well but it's not a scottish base it's a UK base in Scotland. Is there anything else? Yu are correct I'm not making my case the other way as I'm not sure if Scotland is of value

Scotland is not prosperous. They are not a golden goose asset to any alliance. . Not more to be said

I wish you good look with that and your dream of 'independence" within within the EU although they have made it clear they can't take Scotland. I also can't imagine the major cash contributing countries clamouring for another big cash drain from a country which fails several basic entry criteria..

But as I said good luck and crack on

I can't see in any way whatsoever the UK depends on Scotland

There are other factors affecting oil supply and demand beyond emerging from covid and opec. Global air mass movement is at historic lows which is resulting in a large drop in window turning electricity production
This has resulted in a larger demand from. Oil and gas fired production driving oil and especially gas prices up. The global temperature increases are also driving higher demand for powering air conditioning

C'mon ***** keep going

A business sets its debt levels to the point where the cost of both debt and equity are lowest. Debt is usually far cheaper than equity as its lower risk. As you load up with debt the equity shareholders see this as risk and also have to cover.more interest so the sharenprice drops therefor increasing the return they expect. At a point I'll makes no sense increasing debt any further. This is called the optimal weighted average cost of capital and teans of accountants and investors far more informed than anyone on this by set this level

It may not be covered within year but so long as previous profits are accumulated on the reserves brought ged from previous years you can pay divi out of rgat. It is illegal to force total reserves negative by paying too much divi. Its not up for debate its fact

You absolutely cannot do that. It is against company law to pay out high erdividends than profit and loss reserve account

Dividends can only be paid out of accumulated profits. It cant breach it and send the profit and loss reserves negative

Yes but you can only capitalise your business to invest via equity or debt. Both demand an annual return. Why pay down such a cheap form of capital ie debt

Why pay off debt that costs you 1% per pound. Its cheapest way to get capital. If they wanted capital from shareholders it would cost 7% per pound

Plus inflation coming which will devalue the debt especially if their prices inflate

Cost of debt 1%
Cost of equity 7%

Quite a few of the big banks between 4 to 5. I van only see one below where we are now

I think his diversification strategynis spot on. Do agree on oil aline we are discounted to peers by 25% to 40%. Waiting for those analyst targets to arrive

My other recovery play is voda

Got quite a bit in inspired energy too. They will be very busy helping clients go green and managing skyrocketing energy rates and consumption. Think it will rocket Post covid. Another very under the radar stock that's doing well and mainly institution buying stake building going on
Energy and comms infrastructure will be the big playgrounds over next 10 years

Rant or not great post. I agree inflation is the only way to lower the triliions of of western debt. Its the only way so although ibterestbrlwill increase I doubt it will be to a level that caps current inflation rate targets of central banks.

It would help BP and. My other big single stock investment vodafone no end if inflation was allowed to increase with at an interest brake hike

Signs a few months back but never really got going. It will happen again as tech and growth must be topped out.
Is there much upside or downside risk to Divi here as at 7% market clearly demanding a premium for something.

New investor here bought in at 116 20k yesterday. My other bigger holding is BP which seems very undervalued also.
I only play value stocks

But it's Diversifying now. Switch to xom?

It's like sticking with a wife you can't stand when you get get the perfect wife immediately with divorce trouble